Income Tax Assessment Act 1997



Division 775 - Foreign currency gains and losses  

Subdivision 775-C - Roll-over relief for facility agreements  

SECTION 775-180   What this Subdivision is about  

A facility agreement is an agreement where:

  • (a) you have a right to issue eligible securities and another entity or entities must acquire the securities; and
  • (b) the economic effect of the agreement is to enable you to obtain finance in a particular foreign currency.
  • If you choose roll-over relief for a facility agreement:

  • (a) a forex realisation gain or a forex realisation loss you make as a result of forex realisation event 4 is disregarded if the event happens because you discharge your obligation under an eligible security issued by you under the agreement; and
  • (b) if you issue an eligible security under the agreement otherwise than as a result of a roll-over - you are taken to have been given a loan (the notional loan ); and
  • (c) if an eligible security is rolled-over under the agreement - the period of the notional loan is extended by the term of the new security; and
  • (d) forex realisation event 6 happens if you discharge your obligation under the notional loan; and
  • (e) forex realisation event 7 happens if a material variation is made to the agreement.

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